The Icelandic airline Icelandair Group has signed an agreement to acquire all shares in the Icelandic airline Wow Air.
After being suspended from trading, the stock rises by over 50 percent on the Reykjavik Stock Exchange.
Payment will be made in shares in Icelandair, which means that the current shareholders of Wow Air will become minority owners with a preliminary equivalent of 5.4 percent in the new group. The size of the purchase price is dependent on certain conditions.
This is stated in a press release.
The two companies will continue to operate under different brands. Their combined market share in the transatlantic airline market is stated to be 3.8 percent.
”"The acquisition creates opportunities for both companies to become even better prepared to provide international airlines with strong competition in the international aviation market," is the message.
The acquisition requires approval from Icelandair shareholders, the Icelandic Competition Authority and a due diligence process.
